Riley operates a plumbing business, and this year the three$-$year$-$old van he used in the business was destroyed in a traffic accident. The

van was originally purchased for $$20,400,$ and the adjusted basis was $$5,750$ at the time of the accident. Although the van was worth

$$6,040$ at the time of accident, insurance only paid Riley $$1,250$ for the loss. What is the amount of Riley's casualty loss deduction?

Multiple Choice

$$6,040$

$$14,360$

$$5,750$